Banca Transilvania (BT), which is the second largest Romanian banking institution by the value of assets, together with its shareholder the European Bank for Reconstruction and Development (EBRD), intends to purchase an initial shareholding of over 39% in Victoriabank, the third leading bank in Moldova. In a press release, the Romanian banking institution says it is for the first time in the last ten years that a bank from outside Moldova is interested in entering the given market, IPN reports.
When Banca Transilvania buys the holding in Victoriabank, the two partners - BT and EBRD – will together hold a majority holding in Victoriabank. In accordance with the legislation, the two will make an offer to purchase the other shares. As strategic partners, Banca Transilvania and the EBRD want to contribute to the development of the banking sector in Moldova and will support Victoriabank in its efforts to continue to be one of the best and appreciated banks in Moldova.
“We are delighted to join the EBRD and the other shareholders in the efforts to develop the local banking market and to support the economy of the Republic of Moldova. We want to replicate BT’s business model and the success we have in Romania. Victoriabank is a solid bank with a good position on the banking market of the Republic of Moldova. We see growth potential in the business lines in which Banca Transilvania has traditionally rich expertise, such as the SMEs, retail and micro-companies , and as regards the digital financial services. In our ambitious plan, we bank inclusively on the continuation and development of the strategic cooperation with our traditional partners,” stated Horia Ciorcila, president of the Administration Board of BT.
The EBRD became a shareholder of Banca Transilvania in 2001. The bank’s capitalization is of 9.2 billion Romanian lei (RON). In the first half of this year, it made a net profit of 496.06 million RON (about €109m), an increase of 8.2% compared with the corresponding period last year. BT’s assets in the period rose to 53.24 million RON (€11.7bn), up 2.8% on December 2016. Last year, Banca Transilvania for the first time outstripped BRD and climbed to the second spot in the rankings of Romanian banks by the value of assets, after BCR, which remains a leader. The nonperforming loans represented 8.1% at the end of June.
